Artemis secures US$360M project financing for Blackwater

Artemis Gold (TSXV: ARTG) has secured project debt financing that will fund a significant part of its Blackwater project in central British Columbia.

This has been done through a credit-approved commitment letter and term sheet from Macquarie Bank and National Bank of Canada to jointly underwrite a US$360 million project loan facility (PLF).

The project facility also provides for up to US$25 million in capitalized interest and a US$40 million standby cost overrun facility (COF). The standby COF is an addition to the terms previously announced in April 2021, representing a further enhancement of these financing facilities to de-risk development in the current economic environment.

“The committed underwriting of the PLF by two renowned global banks is another important step towards de-risking the development of Blackwater,” Steven Dean, the company’s chairman and CEO, stated in a press release. “This underlines the robust economics and debt carrying capacity of the project, further evidenced by the addition of the standby cost overrun facility to the original PLF proposal.” 

The company added that it remains confident in the US$645 million initial capital cost estimate outlined in the 2021 feasibility study. According to the technical report, Blackwater has a net present value of US$2.15 billion (after tax), and the initial capex will be paid back in 2.3 years. 

In the first five years of operation, Blackwater will produce 321,000 oz. of gold annually at an all-in sustaining cost of US$576 per ounce. Over its 22-year mine life, production will average 351,000 oz. of gold at an AISC of US$672 per ounce.

Construction  was approved in the summer of 2021, nearly a year after Artemis purchased the asset from New Gold (TSX: NGD) for US$190 million.